Centre sanctions ad-hoc bonus to employees for FY21. Check details here

The Centre on Tuesday sanctioned the non-productivity linked, or ad hoc bonus, for its employees for 2020-21 fiscal year. The department of expenditure, which comes under the Union finance ministry, said in an office memorandum that the employees of central paramilitary forces and armed forces are also eligible for the bonus.

The employees who were in service as on March 31, 2021, and have served at least six months of continuous service during 2020-21 fiscal year are eligible for the ad hoc bonus. The non-productivity linked bonus will be payable to employees in Group C and all non-gazetted employees in Group B, who do not come under the ambit of any productivity- linked bonus scheme. The calculation ceiling for payment of this bonus would be monthly emoluments of ₹7,000.

“The quantum of ad hoc bonus will be worked out on the basis of average emoluments/calculation ceiling whichever is lower,” the department of expenditure said. It also shared an illustration on how the payout will be calculated. It said that to calculate the ad hoc bonus for one day, the average emoluments in a year will be divided by 30.4 (average number of days in a month). The amount will then be multiplied by the number of days of bonus granted.

The memorandum said that the calculation ceiling of monthly emoluments of ₹7,000 (where actual average emoluments exceed ₹7,000), the non-productivity linked bonus or ad-hoc bonus for 30 days would work out to be ₹6,908.

The memorandum outlined that for employees who resigned, retired from service or expired before March 31, the bonus will be paid only to those employees who superannuated or to employees who retired on medical grounds or died before March 31 but after completing six months regular service during the year.